iGate posts 136% jump in net profit for June quarter

IT firm iGate on Wednesday posted 136 percent jump in net profit at USD 30 million for the second quarter ended June 30, 2013. This is against a net profit of USD 12.7 million registered in the April-June quarter of 2012, iGate said in a statement.

Revenues for the second quarter of 2013 increased six per cent to USD 283.3 million from USD 268 million in the same period last year. "I am pleased with our performance in the second quarter with revenue growing three per cent sequentially. We booked orders worth over USD 600 million including three significant multi-year contracts each valued at USD 100 million or greater," iGate CEO Gerhard Watzinger said.

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The company is seeing more positive signs related to offshore IT services spending and stability in the overall business environment, with clients spending to their budgets, he said. iGate added 11 new customers during the quarter, of which two were Fortune 1000 companies, it said.

The company ended the second quarter of 2013 with 28,300 employees, it added.

"I am happy with the margin growth seen in the quarter as we absorbed our annual wage hikes which were offset largely by operational efficiencies and to an extent the depreciation of the Indian Rupee," iGate CFO Sujit Sircar said.

On the currency fluctuation, he said, "The tailwinds provided by the rupee fluctuation against the US dollar appear to be short-lived with the operating costs going up in the medium to long term."